3 Star for Sale in Progreso, Yucatan, Mexico

Reduced! 3 Star Hotel for Sale in Progreso, Mexico

Reduced from USD 750k
Down payment of USD 550k and owner will carry financing

Hotel Marmex is located 300 meters (one block removed) from the Gulf of Mexico and a 10 minute walk to the Malecon (tourist area).

The hotel has 16 rooms. Below is the breakdown with the rental fees in Pesos. As of this writing (October 5th, 2013) the exchange rate in to dollars is 1USD = 13.08MXN

The room breakdown, rental prices and hotel description is as follows:

2 singles with king beds; 500 pesos.
6 doubles with two full size beds; 600 pesos
These 8 rooms are located on the ground floor in the main building.

There is a small pool which is walled-in on all sides but is open to the sky. The main building has a dining area which can accommodate up to 40 guests and a small bar. It also has the reception desk, a storage room which can be used as an internet cafe, and another area (which used to be the kitchen) which can be used for a mini-market as there is a street-side entrance. When the hotel is at full capacity during spring break, it is sometimes rented out as an additional room. It has a bathroom with a shower.

The first floor of the main building has 3 additional rooms and the remaining roof area currently is being converted to a patio; it is not finished. When standing on this area the Gulf waters can partially be seen and there is a wonderful breeze.

The three additional rooms and fees are as follows:
1 master suite which has a full kitchen, two bedrooms a walk-in closet, one bath, a small dining area and a livingroom. 950 Pesos.
2 mini-suites which have a small separate kitchen area. One has a king size bed, the other has 2 doubles. 700 Pesos.

After leaving the main building you would walk through a large tiki-hut which is attached to the kitchen and is pool-side. This is where parties are held and this area is quite crowded during the weekends as locals come to use the pool and have lunch.

The tiki-hut opens out to the street so during the afternoons, the guests arrive though here rather than the reception area in the main building. The second pool is in the garden. There is a large tiki-hut (mentioned above) and smaller ones scattered around the pool.

There are another 2 rooms over the kitchen. One has a large bedroom, bathroom and separate kitchen/dining area. It also has a very nice terrace which overlooks the garden and pool. 750 Pesos. The other, is used for storage but can be converted in to another room.

And finally, there are 3 detached studio units in the far side of the garden. These have screened porches and small kitchenettes. 2 have double beds and the 3rd has 2 twins; 700 Pesos.

Additional income is brought in from the restaurant, beer and wine sales and rental of the facilities for celebrations.

A suggestion as to generate regular income would be to rent the rooms out on a monthly basis to expats and create some kind of arrangement which would include accommodations, some meals, perhaps a beer/wine allowance and bi- weekly maid service. This would guarantee full occupancy during the Winter and Spring when the snowbirds arrive.

Mostly the expats stay in condominiums during the season and lounge around by the pools. So, socializing is the highlight of their vacation. Creating a full-service environment at a reasonable cost would fill up the hotel and be an incentive for others to visit thus spend money at the bar and restaurant. Plus, the hotel has plenty of storage space which could be used to accommodate the guests' belongings while they are back in their home countries. I mention this because I've spoken to many people who live in Progreso 6 months out of the year and don't want to haul their things back and forth. They've expressed a willingness to pay for the storage of their items.

The hotel is structurally sound but it needs TLC in terms of cosmetics ie: curb appeal. It is a great deal for the owner to handle as she is in her 70’s and sometimes things are overlooked. The garden area has amazing potential as everything grows beautifully without much care.

Approximate general operating expenses:

Electricity: $900 to $1,200 USD due every two (2) months
Maid’s wages: $15 USD per 8 hour day
Cook’wages: $20 USD per 8 hour day
Cook’s assistant/waiter: $15 USD per 8 hour day
Night watchman: $20 USD per night
Garbage pick-up: $40 to 60 USD per month
Property taxes: $200 per annum
Liquor & restaurant license: $250 per annum
Telephone and internet: $50 approx per month
Approx misc. operating costs: pool chlorine, janitorial supplies, gardening, spot painting, A/C repairs, etc. $400 per month, generally speaking.

**these figures will differ during off seasons as the employees can be brought down to working part-time which is normally the case. Also, the cook's assistant and night watchman can multi-task with janitorial/gardening help on days when the hotel is less busy.

The property consists of 4 lots; as a guesstimate the lots are 17 x 30 meters. It’s difficult to say the exact size as the original property was only two lots and the additional lots were purchased at later dates. Next to the property there are two additional properties which the owners have expressed an interest in selling in the past.

The owner will reduce the price for a cash deal. She's put a lot of work in to the hotel, expanded it and kept it in operation for over 15 years.

Everything else is good to go and in running order. Potential buyers may consider running it with her for a few weeks to get a better understanding of how it operates.

The direct line to the hotel is 52-9663-51129. The owner’s name is JoAnn Suco. At times it is hard to hear the phone ringing so please continue to call or send an email directly to me, her daughter: April Tosch at the email address shown below.